Amendment to Greenlandic mining policy
Greenland Minerals and Energy Ltd ('GMEL' or 'the Company', code ASX:GGG) is pleased to advise that an amendment has been made by the Government of Greenland to the Standard Terms for Exploration Licenses that allows for the inclusion of radioactive elements as exploitable minerals for the purpose of thorough evaluation and reporting.
- (1888PressRelease) September 16, 2010 - Greenland Minerals and Energy (ASX.GGG) today announced, detailed below, an amendment to Greenlandic mining policy which provides a clear pathway for the development of the Kvanefjeld multi-element project, subject to meeting normal environmental, social and financial requirements .
Importantly,final government approval is required to move into the mining phase,as this is not an overturning of the Zero Tolerence on uranium, but a moderation of it,and that at the moment uranium mining is still prohibited.
This is a pivotal moment in the lifecycle of this remarkable project, and a clear indication of the support of the Greenland Government.
Accordingly GGG shares have increased 75% in price to 63.5c, with options (GGGO 20c strike, Jun 2011) more than doubling to 42c.
However I strongly believe that given this announcement GGG shares are substantially undervalued.
The company has the world's largest known JORC Resource of Rare Earths at over 4.5 million tonnes (grade in excess of 1%) and the largest known resource outside of China. The global infatuation with rare earths continues,and as such the share prices of ASX listed companies Lynas,Arafura and Alkane have improved dramatically recently(please see attached article from The West Tuesday 7 Sept) .Strategically located between major markets Europe and North America and with major infrastructure benefits,this project will no doubt become the major focus of participants in the Rare Earth space, being investors, strategic partners, manufacturers and governments themselves. The recent surge in Rare Earth prices means the Kvanefjeld project has the capacity to generate profits well in excess of a $1billion per year* for capital costs near to $2 billion.
This announcement also gives the green light for the company to include revenues from the 280 million pound JORC uranium resource (approx 300ppm) and zinc in a bankable feasibility study to commence next year.
There have been numerous press articles today which speak glowingly about the company's prospects given this landmark decision. Please let me know if you wish to be forwarded any of these articles or wish to discuss the project in general.For brokers or institutional investors, I can facilitate meetings with Company directors if requested.
Please take time to visit the company website at http://www.ggg.gl
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